4 ways in which engineers can optimise their firm’s supply chain efficiency

Highlights

Implement real-time demand planning

Eliminate waste and non-value adding methods

Opt for environmentally safe raw materials

Align with your business strategy

The Indian manufacturing industry is expected to contribute to 22% of the country’s GDP by 2022due to increase in disposable income, rapid urbanisation and the growth of India’s middle class. As a result, engineering firms are experiencing certain, prominent trends like low-cost sourcing of materials, and customisation. While these trends have proven to be beneficial for manufacturing businesses, anoutdated and erroneous supply chain management can prevent your business from realising its full potential.

Supply chain optimisation can not only position you to reap the benefits of heightened product demand but also enable you to add value by developing a customer-oriented business process. Below are four tried and tested strategies to get the best out of the supply chain process.

Related tools or products

1. Revamp demand planning

As per the A.T. Kearney and CSCMP study, most Indian tier 1 cities are expected to transform into major demand centres with an average GDP of USD 20 billion. Businesses will require rethinking the supply chain business process in order to cater to metro cities, urban, semi-urban as well as rural settlements.

You can utilise automated supply chain management tools for real-time demand planning based on past insights and inventory data. Based on the demand trend, you can customise your pricing, promotional and product strategy to achieve desired goals.

2. Adopt lean methodology

The lean manufacturing process focuses on eliminating wasteand non-value adding methods or activities from the production process thereby reducing manufacturing time and cost. Adopting a lean supply chain process involves a reduction in inventory waste by utilising inventory management tools gathering prompt insights regarding raw material requirement. You can also reduce warehousing and handling cost associated with idle inventory and control wastage of time by employing a single centralised procurement department for all your products.

You can avail the services of inventory management or asset management software for Rs.16 lakh and above. If you are looking to reduce initial your out-of-pocket expense, opt for special engineer loans. With pre-approved offers, the process of procuring loans has become much easier. Check out your pre-approved offer by filling in a few basic details.

3. Design a sustainable approach

With growing consumer demand for environmentally safe products, businesses have adopted a sustainable logistics system, focusing on reducing the adverse impact on the eco-system. Overtime firms have realised the potential of a sustainable approach to create value for the business, increase the scope for innovation and provide early adopters with a competitive edge.

While implementing sustainable changes to supply chain, you should start from the basics – opt for suppliers providing bio-degradable products utilising non-toxic chemicals and recycled water and renewable energy sources.

4. Implement your corporate strategy

A corporate or business strategy defines the major goals and objectives of your business, which remains true throughout all departments. Remember your logistics department does not work in silos, it constitutes an important part of your firm; build a detailed and actionable operating plan to aligning your supply chain goals with the overall business strategy.

First, identify which functional area of the overall strategy is affected by the supply chain process, next measure the current performance of the supply chain process against desired goals. Analyse the difference between the desired and actual result, implement necessary changes, and undertake periodic evaluations to ensure optimal results.

Pre-Approved Offer

I authorize Bajaj Finserv representative to call /SMS towards this application and other products/services. This consent overrides my registration for DNC/NDNC. T&C

Terms and Conditions

By checking the 'Submit' button below and by entering the one-time password (“OTP”) sent by Bajaj Finance Limited (“BFL”), I hereby agrees and acknowledges that I

Am 18 years of age,

Can understand, read and write in the English language,

Have read and understood the terms and conditions contained below (“Terms”).

I agree that my action of entering the OTP sent by BFL and clicking the “Submit” button, constitutes a valid acceptance by me of the Terms contained herein and creates a binding and enforceable agreement between me and BFL.

I declare that all the particulars and information provided by me are true, correct, complete and up-to-date in all respects and that I have not withheld any information whatsoever.

I confirm that I have/had no insolvency proceedings against me nor have I ever been adjudicated insolvent by any court or other authority and I further confirm that I have read the information on various loan products made available by BFL on www.bajajfinserv.in/finance

I authorize BFL to exchange, share all information and details as provided by me and in relation to my existing loans and/or repayment history to any third party including but not limited to its group companies, service providers, banks, financial institutions, credit bureaus, telecommunication companies, statutory bodies, business partners etc. for customer verification, personalization of products or services, credit rating, data enrichment, marketing or promotion of BFL services or related products or that of its associates/business partners and affiliates or for enforcement of your obligations and I shall not hold BFL (or any of its group companies or its/their agents/representatives/ business partners) liable for the use/sharing of the information as stated above.

I agree and affirm that BFL may contact me and communicate with me over telephonic calls, or SMS on the mobile number mentioned herein, or through any other communication mode (“Communication Modes”) to verify the details provided by me . Further, I confirm that I would like to know through the above mentioned Communication Modes various BFL loan offer schemes or loan promotional schemes or any other promotional schemes relating to various products/services offered by BFL/its group companies/business partners from time to time and hereby authorize BFL, its group companies, employees, agents, associates, business partners to contact me from time to time for the same.

I hereby expressly consent and authorise BFL/ its representatives/agents/ its business partners/its group companies/affiliates to send me any communication regarding products/services offered by them using various communication channels, such as, telephone, calls/SMS/bitly/bots/emails/post etc.

I undertake to keep BFL updated of any change in the information provided by me.

I understand and acknowledge that Bajaj Finance shall have the absolute discretion, without assigning any reason to reject my loan application and that Bajaj Finance shall not be responsible/liable in any manner whatsoever for such rejection.

I further understand and agree that pursuant to this application form, I will be required to submit documents to the satisfaction of Bajaj Finance and accept the loan terms and conditions for availing the loan granted to me by Bajaj Finance from time to time.